All Forum Posts by: Michael Nemeth

If you have long-standing tenants (good relationships with them), and few maintenance issues, I would try to manage from afar.

HOWEVER, before relocating, I would also shop for property managers to see if there is anyone you like, in case the new job/new city demand more than you think they will. You also should be able to find a company willing to screen potential tenants for turnovers. That is a HUGE time saver in spite of the additional cost. It's always good to have back up, just in case. And you should be able to set limits with any management if you one day need to go that route.

Good luck.

Typically, the PM pay is taken out of rent prior to forwarding the remainder (minus maintenance fees, insurance, taxes, etc.) to you.

If you're wondering about payment rates, shop around your area to see what they are.

I'm not sure you should have a set rule about property management when buying a new place; whether keep or replace current PM. There are a lot of small factors that can have a big impact.

If you're buying SF there may be less of an issue with knowing the history and tenants; you can just ask owner or tenant for background. For MF, depending on size could be a big issue; the larger the building the larger the issue. And if the property is easily maintained and good one to manage, you will have a disgruntled exiting PM who can make the transition worse.

I've worked with owners who wanted to keep their portfolios split so that they can learn how each PM works and what may work best for them. I've also worked with ones that like to consolidate for lower fees. Either way, make sure it's beneficial to your overall plan. Don't forget, any PM works for you.

Tim,

PM in DC and have dealt with a few housing issues that ballooned like this. It's entirely possible the electrician was sent just check out one thing only to have another 2-3 pointed out while there which then leads to investigating further which then...

I'd err on the side of assuming the manager was acting in good faith and protection of your house and tenant. To believe otherwise will only lead you to another PM. (Side note: When interviewing new clients I'd always ask what their problem was with their last PM because that was, most likely, going to be their issue with me.)

Property Management is all about communication and there were clearly crossed wires here. The errors can be corrected by a civil discussion and clear directive that it shouldn't happen again. Even a short string of emails would have at least notified you that the simple issue was growing in real time. That is not too much to ask these days.

This is also a good chance to reassess your leadership as the landlord. You are the captain of the ship; The management works at your directives (within reason and legality). What do you want to happen when issues arise? What improvements can you add to the equation? A limit or reserve is worth considering.

I'd be willing to forgive but not willing to fully forget.

It can be like calling a date to say why you won't be calling again. Not really needed. But if it's someone with whom you worked with in the past or hope to in the future, then letting them know and building a relationship is a must.

There is such a thing as "good will equity" and contractors, typically, have a running log in their head of where people stand.

To help soften the blow, I give them a head's up on other work coming down the pipeline and let them know I want them involved, if it's a job they'd like to have.

If you want a simple response: No, it's not a "good" offer.

Here's why: Your friend is not saving anything by not using an agent. My math says $285K - 5% Commission (no one should ever pay more!) equals $270,750. So already your friend is giving away $750.

Also, do not underestimate the downside: Your inexperienced friend vs. An active investor. Even without bad intentions, your friend is walking into a wolf's lair.

Proof of that is that he "will go easy on the inspection" and "delay closing." Um, ok? Sound like a nice gesture but some locales the seller isn't required to do ANY repairs. (Is New B. one of those locales? A local agent would know.) And the Closing Date is negotiated between buyer and seller, not set by just the buyer. So this offer to go easy and delay close is...unnecessary at best, a faux "kind" gesture.

The fact the offer is cash is moot if your friend needs time to find a new place and if there's mortgage to be paid off. Unless the offer tops $277K ($285K- 2.5%Commission) I wouldn't even consider selling to this buyer without agent representation given what's already been "offered".

You only need an agent if something goes wrong and then you really, really need them.

You're right the 2 fans are a fixture of the property in the pure sense they are attached to the property, but with notification, she has the right to remove them and take them with her. Get ducks in a row by asking her intentions will help you both.

If she does take them, you may be able to deduct from sec. deposit for installation of replacement fixtures (but not the fixtures themselves) depending on local laws.

Also, feel free to negotiate if you want to keep them or if she decides she doesn't want them. Moving ceiling fans isn't a great way to keep them in workable shape. Tenants may be open to making their move-out easier especially if they get an extra few bucks in the process.